Combining Schedule C

[RaggedyAnnie]

I have two Schedule Cs.  One for Vocalist/Musician, one for Voice Over talent, same business code.  Should I combine them?  If so, how do I do that?

[jhunt4]

Reporting income from similar streams of income can be reported on a single Schedule C. However, a musician would typically report income under NAICS Code 711110, while Independent Artists, which voice actors would be considered, typically report income under NAICS Code 711510. These two types of work are different enough to require separate Schedules C.

To confirm which codes are most appropriate for each of your streams of income, the NAICS Association's site would prove useful.

[RaggedyAnnie]

711110 seems to be for dinner theatre performers

[RaggedyAnnie]

Ok I see it as 711310, different from acting, which I guess is voice over.  It was recommended to me by a Turbo Tax adviser that they were close enough I could combine.

[jhunt4]

After reviewing the options for both lines of work, if you believe there is one NAICS code that encompasses them, you would simply discontinue reporting the income of one of them on its own Schedule C going forward. Combine your income and expenses from both when preparing your tax return under the code you believe is most appropriate. TurboTax software will prompt you to answer questions regarding "discontinuing" the work of one. This simply means you will no longer be reporting that income and associated expenses on a separate Schedule C.

[RaggedyAnnie]

What happens to any depreciating items?

[Terri Lynn]

Good afternoon, RaggedyAnnie!

You asked about how to report the depreciable assets from the separate Schedule C that you are combining into another Schedule C.   

You will need to enter the assets, into the asset expense section of the combined Schedule C form. 

You will need to report them exactly as they  were originally reported on their original Schedule C. 

Make sure you get the prior depreciation entered in correctly,  and use the original date of service, cost, type and description. All of the depreciated assets need to be  transferred over, even if they were fully depreciated, to ensure they are properly handled when they are sold or disposed of.

The date placed in service, the type of asset, its cost basis,  and total prior year depreciation, can all be found on form 4562  Depreciation worksheets. 

For further information on this topic please see:

Depreciating Business Assets 

Reporting Self Emplyment Income and Expenses  

Schedule C tax tips 

Hopefully this helps!

Terri Lynn, EA

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